Archive · 18 Sep 2026
High gold prices prompt jewellery buyers to defer purchases
Gold prices have risen and moved up and down sharply.
Because of this, many people in India are waiting before buying jewellery.
Demand had been strong before the festive season but softened recently.
Wedding purchases have stayed more steady, although people are choosing lighter jewellery.
Retailers are being careful about how much jewellery they keep in stock.
Demand may improve as the festive and wedding season continues.
Physical investment demand remains steady, while some investors are moving toward digital gold.
Gold imports into India fell sharply in August, and local prices remained below the cost of imported gold.
Gold jewellery demand in India has softened in recent weeks after a strong run-up before the festive season.
Sharp price swings have led consumers to delay discretionary purchases while waiting for greater stability.
Wedding-related demand remains relatively resilient, though buyers are shifting toward lighter-weight jewellery.
Retailers are limiting inventory buildup, while large chains are emphasizing faster-moving products and promotions.
Gold imports fell to USD 2.3 billion in August, while domestic prices traded nearly 2% below import parity.
- Who
- Indian jewellery consumers, retailers, manufacturers, investors and the World Gold Council.
- What
- Gold jewellery demand has softened as high and volatile prices prompt buyers to delay discretionary purchases.
- When
- In recent weeks; the festive season began in late August, and the import figures refer to August while discounts were reported as of September 11.
- Where
- India, including its domestic gold and jewellery market.
- Why
- Consumers are waiting for greater price stability, while elevated prices and volatility are constraining discretionary buying.
Recovery outlook
Caution outlook
Demand during the festive and wedding season
Recovery outlook
The World Gold Council and market participants expect demand to improve as the festive and wedding season progresses, supported by steady investment and resilient wedding-related buying.
Caution outlook
High prices and sharp volatility may continue to discourage discretionary purchases, while consumers remain in a wait-and-watch mode until prices stabilize.
Retail and market conditions
Recovery outlook
Large retailers are responding with new products, marketing campaigns and promotions, while wedding demand remains comparatively strong.
Caution outlook
Retailers are cautious about building inventory, manufacturers report delayed orders, and widened discounts indicate that demand and local supply conditions remain uneven.
- Festive-season demand
- Jewellery demand strengthened before the festive season but softened in recent weeks.
- Wedding demand
- Wedding-related buying has remained relatively resilient, with a shift toward lighter-weight jewellery.
- August gold imports
- Imports fell to USD 2.3 billion, down 45% month-on-month and 58% year-on-year.
- Estimated import volume
- Gold imports in August were estimated at 15-20 tonnes.
- Domestic price discount
- Domestic prices were nearly 2% below import parity or landed price as of September 11.
- Gold discounts
- The average discount widened from USD 34 an ounce in July to USD 78 as of September 11.
- Investment demand
- Physical investment demand remained steady, although some investors shifted toward digital gold.